Caanfor Pulp News Release
Canfor Pulp to increase LP, GP interest to 100%
2012-02-20 14:40 PT - News Release
Mr. Terry Hodgins reports
CANFOR PULP PRODUCTS INC. RECEIVES NOTICE OF CANADIAN FOREST PRODUCTS LTD. ELECTION TO EXCHANGE INTEREST IN PARTNERSHIP
Canfor Pulp Products Inc. has received notice from Canadian Forest Products Ltd. that CFP has elected to exercise its right to exchange its 50.2-per-cent interest in Canfor Pulp Limited Partnership for a 50.2-per-cent direct interest in CPPI. The exchange will be made pursuant to the terms of the exchange agreement dated Jan. 1, 2011, between CFP, CPPI, the partnership and Canfor Pulp Holding Inc., the general partner of the partnership, and involves the exchange of all 35,776,483 Class B exchangeable units of the partnership and all 35,776,483 common shares of the general partner currently held by CFP for 35,776,483 common shares to be issued from treasury by CPPI. The exchange is expected to be completed on or about March 2, 2012.
As a result of the exchange, CPPI will increase its interest in both the partnership and the general partner from 49.8 per cent to 100 per cent, and CFP will hold 35,776,483 shares of CPPI representing 50.2 per cent of the outstanding shares of CPPI with the remaining 35,493,307 shares or 49.8 per cent of the outstanding shares of CPPI held by the existing shareholders.
A copy of the exchange agreement is filed under CPPI's profile on SEDAR.
About Canfor Pulp Limited Partnership
The partnership is a limited partnership formed on April 21, 2006, under the laws of Manitoba to acquire and carry on the northern bleached softwood kraft pulp and paper business of Canfor. The business consists of two NBSK pulp mills and one NBSK pulp and paper mill located in Prince George, B.C., and a marketing group based in Vancouver, B.C.
We seek Safe Harbor.